29.09.08

Russia’s Central Bank is concerned about the increasing frequency of money transfers made between resident legal entities from accounts in Russia to accounts in foreign banks. Most of foreign accounts are located in Kazakhstan, Moldova, Estonia, Latvia, and Cyprus.

Among some distinguishing characteristics of these transactions are following:

• Monthly volume of operations exceeds the charter capital of the legal entity by more than one hundred times.
• Most of the operations are transit operations.
• Taxes and other mandatory payments into the Russian budget are not paid at all or paid in very insignificant amount.

According to the Central Bank, the nature of these operations indicates that they are most likely made to evade taxes, pay for “gray” (illegal) import transactions, and/or launder money.

The CB reminds that credit institutions must report all similar suspicious operations to Federal Financial Monitoring Service and request resident legal entities, conducting suspicious transfers, to present documentation confirming the sources of assets in their account and other documents affirming their ownership of merchandize sold in the RF or other material assets. This is according to the Letter of the Central Bank # 111-T from September 3, 2008.

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Source: LEGIS.RU